The truth about a complex built for veterans and the middle class and how it has evolved through the years to become one of the more interesting and controversial of New York stories.

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Friday, December 9, 2011

Guterman Attacks!

By now you all should have received a letter from Gerald Guterman of Guterman-Westwood Partners. Guterman is interested in STPCV, too, and is, to put it mildly, pissed at the deal between the TA/Garodnick and Brookfield. Among the several accusations leveled against the TA/Garodnick is that the TA assured Guterman that there would be no alliances formed with the TA "until CW was ready to commence a sales process" (which hasn't yet occurred). The TA also had directed Guterman not to directly communicate with tenants while talks were underway.

In case you haven't received the Guterman letter, click on the pages below to read it.

I'm not a fan of any condo/co-op proposal, but it is interesting to see how people are already screwing each other in private, non-transparent deals that concern all of us residents. Let the fighting begin!

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Update 12/9/2011. The TA responds to the Guterman letter.

TA Comments on Guterman-Westwood Letter

Dear Neighbor:

This has been an exciting week for all of us as we begin to put together a bid to CW Capital to protect the long term stability and affordability of Stuyvesant Town and Peter Cooper Village. We feel confident that our partnership with Brookfield will give us the ability to deliver a plan that is both commercially viable and also satisfies our goals.

You may have received a letter recently from Guterman-Westwood Partners LLC describing an alternative partnership with tenants to bid for Stuyvesant Town and Peter Cooper Village. It is important that our community have the facts, and that is why I am sending this follow-up letter.

During this extensive process, we met with the representatives of Guterman-Westwood, as well as with dozens of other potential partners. After consulting with our advisors from Paul Weiss and Moelis & Company, we decided to select Brookfield Asset Management over all the others because they have both the credibility in the real estate market and the commitment and ability to live up to the principles and goals of the Tenants Association. Those goals are clear: to allow residents the choice to either purchase their apartment at an affordable price or to stay on as rent-stabilized tenants; to improve the maintenance and upkeep of our community; to prevent new development on open space, and to ensure that the middle-class character of Stuyvesant Town and Peter Cooper Village continues for the next generation.

There are some important facts about the Guterman-Westwood proposal that the T.A. and our Advisors find worrisome and that our community needs to consider.

1) Financial Commitment- Guterman-Westwood has outlined a “pricing plan” for tenants to purchase their apartments. We are concerned with the plan’s ability to raise the amount of capital needed to purchase the property from CW Capital. It is critical that any bid put forward by Tenants have the capability to engage CW Capital.

2) Short-Term Partner – When we began this process, the TA committed to finding a long-term partner to help our community buy the property – and then to stick around to help us improve it. Guterman-Westwood has made it clear that they would convert the property and have no continuing involvement

3) Converting to a co-op, instead of a condominium. Guterman-Westwood’s proposal calls for converting Stuyvesant Town-Peter Cooper Village into a cooperative. After careful review of this issue, we believe, along with our professional advisors, that a co-op conversion could present problems. For example, a co-op would mean a common tax lot and a master mortgage, increasing the chance of systemic financial distress that could impact every resident in the community. The risk of such financial headaches could make it difficult for residents to find lenders willing to help them buy their apartments during the conversion process. In addition, the costs of repaying a property-wide “master” mortgage would mean higher monthly maintenance charges for residents. A condominium conversion would avoid all of these challenges, allow for more flexibility when we choose our community’s governance structure, and allow us to target property tax abatements directly to rental or “affordable” apartments on a unit-by-unit basis.

We are now at the beginning of what will be a long process of listening to our neighbors, gathering feedback and input, and preparing to put forward a tenant-led bid that will put us in charge of the future of our community. I want to thank the volunteers of the Tenants Association whose work has been critical to our effort, and the thousands of Stuyvesant Town and Peter Cooper residents who have offered their support and ideas throughout this process.

I hope that you will continue to stay informed and involved as we move forward. For more information, please visit our website at www.ProtectSTPCV.org, or feel free to call us at (646) 403-9747.

26 comments:

Good for Guterman. We need to have some kind of competition and debate here. I personally don't care for the TA's "black box, don't ask any questions, we've done all of the due diligence, just sign here" approach to this whole situation. Not to mention their virtual abandonment of the affordability pledge.

Hey, is it just me or was that Al Doily I saw doing a pirouette on the illegal ice rink last Sunday?!? I hear someone spotted him a free season pass...

You are fools if you think the TA has your best interest at heart. No one is going to give this place away for free, Not CW, not BIP not Gueterman. We need to be open minded to all and see who is offering the best deal for us. It's way to early in the game to choose which is the best way to go with this. There will be more players coming to bat. Lets notmake a deal in the first inning.

We should not be pressured into making a deal right a way. I think we should all be open minded. The TA MUST allow any developer who wants to present a plan to us to do so in writting. If we find out that the TA is not doing so, then we need to vote the board out of office. If the TA rushes this through we will all be burnt.

"You may have received a letter recently from Guterman-Westwood Partners LLC describing an alternative partnership with tenants to bid for Stuyvesant Town and Peter Cooper Village. It is important that our community have the facts, and that is why I am sending this follow-up letter."

Shee-oot! If they really wanted us to have the facts, they wouldn't have tried to get this dirty deal done in secret without involving the people they are supposed to be representing. These guys have lost a lot of credibility and have left themselves open to a lot of well-deserved skepticism.

What Guterman is essentially proposing is to come in, flip all the apartments, make his fee, and leave. We don't need another big developer looking to fatten his wallet. We need a long-term partner who will help us buy the property and stick with us in the long-run to make improvements and ensure stability. From my read, that's what the TA is trying to achieve.

Why is Guterman attacking the Tenants Association and Dan Garodnick? This letter smacks of a sore loser whose proposal was rejected on the merits. What is it about our community that attracts these hucksters with their get-rich-quick schemes?

The TA's decision to go condo, instead of coop, is the right one. A coop this large would be unsustainable, and if there were financial stress at the coop, it would effect every single resident. It would also be much harder for tenants to get home loans at good rates under a coop conversion.

"If you don't want to buy your unit, don't. Stay as a RS renter. But I'm eager to see the offer anyway."

I second that emotion! Just so long as they don't start putting pressure on the RS tenants who can't afford to buy. It's bad enough we're called all sorts of nasty names by the newbies who resent the fact that our rents are somewhat lower than theirs and cannot be arbitrarily raised like theirs' can.

I mentioned this in another thread, that the Guterman organization proposes to co-op only the RESIDENTIAL units, and keeps the commercial space and parking for themselves.

There are probably thousands of parking spaces rented at over $400 a month, I'm guessing that the 7 garages could hold 3000 + spots which could equal 10 to 15 million a year in revenue to be used for operating expenses. This doesn't even include the commercial rents. If the property doesn't get income to pay the staff and maintain the grounds, then the shortfall will come from the tenants (owners) pockets.

I'm not saying this will happen, but people better keep their eyes open to hidden costs.

We will need to hire electrical, mechanical and structural engineers to go over each and every building before we bid or accept any offers of any type.The maintenance on these buildings have been neglected, riddled with band aide repairs performed by lowest bidding contractors. The buildings seem to need to have the brick work repointed, to stop rain water from migrating into the inner infrastructure. Pluming including waste lines , and electrical risers will need to be thoroughly inspected. Without engineering reports, anyone who buys there apartment is playing Russian Roulette with their financial future. It’s the stuff you can’t see that always bites you in the end. So, first things first. Engineering inspections! Only then can you talk price!

Anonymous 5:45: At the meeting, I got the impression that Brookfield was planning to keep the commercial income, although the garages weren't mentioned. Whatever was said about that was glossed over very quickly without clarification. Maybe someone else got a different impression.

“3) Converting to a co-op, instead of a condominium”….”a co-op would mean a common tax lot and a master mortgage, increasing the chance of systemic financial distress that could impact every resident in the community. The risk of such financial headaches could make it difficult for residents to find lenders willing to help them buy their apartments during the conversion process.”

A condo conversion would mean a much larger mortgage size for buyers—which also could make it difficult for residents to find lenders willing to help them buy their apartments during the conversion process. I’m not a fan of either of these proposals but I would be willing to bet that residents would more easily be able to qualify on a mortgage to buy a $250,000+ co-op than a $500,000+ condo. Not to mention that, if the prospective buyer has $50,000 to use as a down payment, that would be a 20% down payment on the co-op but only 10% on the condo—not enough to qualify you for favorable loan terms or maybe not even enough to qualify you for a mortgage of any kind in this environment.

If financing isn’t readily available to those even willing to buy, those units will revert to the sponsor so even long-time tenants that might be agreeable to take the plunge could well be disenfranchised. I’m sure this angle has not been lost on Brookfield—they get your unit at the “insider” price and you remain a tenant at their pleasure.

I doubt that the TA is holding back info and "glossing over" issues and not being transparrent in their decission making. Because if that WAS the case, I can see class action law suits against the TA and indivual civil law suits filed.

Saying that the plan had been attempted for decades is simply inaccurate. There had been persistent rumors that MetLife was exploring the option of selling the complex, but it was never (in any form) presented to the residents, or even acknowledged by Met. So to say it was attempted is not true. It might have been considered, but not attempted.

So much misinformation here. The Guterman plan needs to be heard along with Brookfield and perhap 1 or 2 more credible plans. Important to realize...under any plan, as rental apartments are vacated, they will ALL be sold at market rates. Within 20 years this place will change...no stopping that. The TA has NOT formed a partnership with anyone. The TA Exec board has. The TA Exec Board and Garodnick are limiting communication & concentrating power & influence among themselves. This is wrong. They should be enabling communication & discussion and helping tenants to see where & how they can exercise power. Legally, 15% of the units here must indicate a willingness to buy for a plan to be accepted. Any plan that does not get 15% support will not move forward. It is in this voting to buy that the tenants have their only legal power.

Until There Is Silence No More

The Tenants Association and our councilman Dan Garodnick have mysteriously remained silent about a purported incident that occurred on July 12: the mugging by a group of individuals of someone right by Peter Cooper Village, along 20th Street.

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"We'll be introducing a new process to identify registered dogs thus enabling Public Safety Officers to clearly approach offending dog owners. The registration will hang from the leash handle; clearly identifying the dog as registered.

"If the dog is not registered by May 1; a summons will be issued at the point of contact. If we learn the dog owner is not a resident, they will be escorted off the property."

Rick Hayduk, CEO and General Manager of PCVST. Letter to Barry Shapiro, February 2016.

THINKING of Renting in PCVST?

Read Yelp reviews to find out what it's like living here. Please note: All apartments are currently "rent-stabilized" but that doesn't prevent apartments from going up to 4K to 6K a month and even higher. How does this happen? Ask our politicians! Fact: Now less than half of the complex's apartments have the old rents and it's getting worse year by year--or better if you are the Real Estate Board of New York!

The Other Yelp Reviews

Yelp can be tricky and bounce reviews for a variety of reasons, like being a member and posting just one review. Very often, however, these reviews hold important truths about what's being reviewed. READ THESE TOO.

BICYCLES, MOPEDS, SCOOTERS, ETC.

Of course, "private property" but "public access" - whatever that means! And if a part of it is public access, do the rules of the city apply to our roads and sidewalks? Or does anything give because this complex is "private property"? Who comes here in case of a fire in one of our buildings? The Stuy Town Fire Brigade?

Hint: Look both ways if you are in the complex. Look on the ground, too!

61.03 Control of dogs and other animals to prevent nuisance. (a) A person who owns, possesses or controls a dog, cat or other animal shall not permit the animal to commit a nuisance on a sidewalk of any public place, on a floor, wall, stairway, sidewalk, lawn, garden or roof of any public or private premises used in common by the public, or on a fence, wall [or], stairway or entranceway of a building abutting on a public place

Banned & Oversize Dog Breeds in Stuy Town

Looks like there is some difficulty in enforcing the ban on certain dog breeds allowed inside Stuy Town/Peter Cooper Village. Somehow pitbulls and pitbull mixes have been registered in STPCV and are allowed to be freely walked about the grounds! Registered dogs in the complex are max 50 pounds. Total, if there is more than one! More than two, it's illegal. It's going to get worse, and, face it, Stuyvesant Town and Peter Cooper Village will never be like it once was.

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Read it and Weep

Current Value of ST/PCV

Was 5.4 Billion Dollars when Tishman Speyer bought the place.Became 1.7 Billion Dollars when Tishman Speyer left, with their tail between their legs. Of course, tenants now have to make up the loss.

Ex-landlord

Rob Speyer

1947 Stuy Town Plaque Honoring Met Life Chairman F.H. Ecker (Removed in 2002 and never seen again)

"... who with the vision of experience and the energy of youth conceived and brought into being this project, and others like it, that families of moderate means might live in health, comfort and dignity in park-like communities and that a pattern might be set of private enterprise productively devoted to public service."

I am writing on behalf of everyone at Tishman Speyer to express how honored we are to become part of your outstanding community. We are a business with deep roots in New York, a true love of our city and a great respect for the neighborhoods that make it special. We are committed to maintaining the unique character and environment that have made Peter Cooper Village and Stuyvesant Town such a wonderful place to live for so long. We look forward to providing you an extraordinary level of service and attentiveness that will be the source of pride and satisfaction for the entire community.

Neighborhood Recommendations

New to Stuy Town/Peter Cooper Village? Here are some basic recommendations.

Best supermarket: Associated on 14th St. between 1st Ave. and Ave A. The cheapest prices, fantastic weekly sales, very affordable lunches; solid, responsive management, but earthy. Some of the young female cashiers have attitude to spare, though. May be too far for Peter Cooper residents.

Best gym: Don't waste your money on the Oval Fitness Gym. Instead go to the earthy but real Asser Levy Recreational Center, right above 23rd St on Asser Levy Place (near the FDR Drive). $75 for a year's membership; seniors are almost free. Contains seasonal indoor and outdoor swimming pools, ping-pong table, two pool tables. Called by some rich people who wouldn't get caught going there "the prison gym," and you know why.

A Stuy Town favorite is Lenz's on 20 St. between the 20 St. Loop. The way New York used to be. Be careful of unwanted "pepper" in your food, however. Lenz's got a B grade rating and was temporarily closed down due to an order from the Health Department. Bruno's on First Avenue is more upscale, with a greater selection of food items (higher-priced, too), but was closed down temporarily by the Health Department. Stuy Town's own cafe was closed, too! And not because of all the dogs that hover and piss outside.

Gracefully has two locations, but we prefer for its size the one on 1st Ave. Prices are high and reflect the new tenants that are currently renting Stuy Town and Peter Cooper apartments. ("Do you have a credit card?") We like Gracefully's lunch specials, which are somewhat affordable.

I priced the CVS on 1st Ave near 14st. The non-aerosol hairspray was 20 cents above CVS' own website price, and one of the highest in NY. (Yes, I have hair.) You can save at least a dollar or more buying at another place. So beware. Look around for a better deal on all your items.

I love warm Quaker Oats in the morning. Gristedes is not the place to get it, nor is Associated, though their price is less. Look around!

Macular Degeneration Support Group

If you are currently diagnosed with Macular Degeneration, the New York Eye & Ear Infirmary is offering a support group for you. Conveniently located next to the Peter Cooper Village Stuyvesant Town apartment complex, our group offers the opportunity to share stories with other members, listen to expert guest speakers, and learn coping strategies to reduce stress. Our group runs on the first Wednesday of every month and we would enjoy seeing you there.
Please contact Baptiste Nicolas, Social Work Assistant at 212-979-4105 for further information and to see if this group is right for you!